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Mitsubishi to up stake in Anglo's Quellaveco copper mine to 40% in US$600M deal

Industry Top Trends 2021: Metals and Mining

Greenhouse gas and gold mines Nearly 1 ton of CO2 emitted per ounce of gold produced in 2019

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Mitsubishi to up stake in Anglo's Quellaveco copper mine to 40% in US$600M deal

TOP NEWS

Mitsubishi to raise stake in Anglo's Quellaveco copper mine to 40% in US$600M deal

Anglo American PLC signed a heads of agreement with Mitsubishi Corp., where the latter will increase its stake in the Quellaveco copper joint venture in Peru to 40% through the acquisition of a 21.9% interest in unit Anglo American Quellaveco SA, which holds the project, for US$600 million. Prior to the sale, Mitsubishi held an 18.1% stake in Quellaveco. The transaction is expected to close in the third quarter.

ThyssenKrupp, Tata Steel in talks to revise European JV profit split

ThyssenKrupp AG and Tata Steel Ltd. are said to be discussing changing the terms of their proposed joint venture in Europe in a way that could give the German steelmaker a bigger share of profits, Bloomberg News reported, citing people familiar with the matter. One of the options under consideration is to raise ThyssenKrupp's equity stake in the partnership and keep the voting rights at a 50-50 split, according to the report. ThyssenKrupp is seeking changes to the deal after profits plunged at Tata's European steel business.

Chinese investment in Australian mining to rise; fewer executives feel welcome

Chinese investment is expected to continue in Australia's mining sector, which bucked the 2017 trend when the Asian giant's global overseas direct investment fell 29% amid broader concerns among Chinese executives of feeling increasingly "unwelcome" Down Under. KPMG International's latest "Demystifying Chinese Investment in Australia" report revealed that mining was the most significant sector for Chinese investment in 2017 with 35% of total overseas direct investment.

BASE METALS

* Talga Resources Ltd. could float its Swedish cobalt spinout in the next 12 months, company COO Martin Phillips told S&P Global Market Intelligence on the sidelines of the Euro Mine Expo in Skellefteå, Sweden. In May, the ASX-listed miner announced that it was seeking to off-load its cobalt projects in northern Sweden into a domestic subsidiary to focus on its graphite business. Talga Battery Metals AB will hold the Kiskama, Ahmavuoma, Aitik East and Lautakoski projects, while Talga Graphene AB is holding its graphite assets.

* Mongolian authorities released former Finance Minister Bayartsogt Sangajav and the former CEO of state-owned investment company Erdenes Mongol, Byambasaikhan Bayanjargal, Reuters reported. They were arrested in April by the country's anti-corruption agency as part of an investigation related to the Oyu Tolgoi copper-gold project in Mongolia, owned by Rio Tinto unit Turquoise Hill Resources Ltd.

* Peru's Ministry of Energy and Mines plans to begin a tender offer process for its Jalaoca copper-gold-molybdenum project in the Apurimac region July 12. Meanwhile, the auction of the Colca copper-gold project in Apurimac is set for September, Proactivo reported, citing Peruvian investment agency ProInversión.

PRECIOUS METALS

* Silver Mines Ltd.'s feasibility study for its wholly owned Bowdens silver project in New South Wales, Australia, pegged a posttax net present value, discounted at 5%, of A$70.6 million and a 17.9% internal rate of return.

* Nighthawk Gold Corp. said resources at its Colomac gold project in Canada's Northwest Territories grew 24.4% to 2.6 million ounces. Colomac now hosts inferred resources of 50.3 million tonnes grading 1.62 g/t gold, compared to a 2013 estimate of 39.8 million tonnes grading 1.64 g/t gold for 2.1 million ounces of gold.

* The body of a fifth gold miner killed in an incident at Sibanye Gold Ltd.'s Ikamva mine, part of the Kloof gold operations in South Africa, was recovered.

* Echo Resources Ltd. upgraded resources for the Orelia deposit, part of the Yandal gold project in Western Australia, in the measured category to 2.8 million tonnes grading 2.6 g/t gold for 237,000 contained ounces.

* AlphaGlobal Capital submitted a claim to the High Court in the British Virgin Islands seeking 142.8 million South African rand from Eastern Platinum Ltd. and its subsidiary Eastplats International, Mining Weekly reported. The amount includes sums outstanding and payable by Eastplats under a 2007 promissory note.

BULK COMMODITIES

* Thyssenkrupp Steel Europe CEO Andreas Goss said excess steel coming to Europe due to U.S. steel tariffs would have a more serious impact than the tariffs themselves, Reuters reported. The executive said tariffs would be "painful, but manageable."

* Mariana, Brazil, Mayor Duarte Junior said Vale SA, which owns Samarco Mineração SA in a joint venture with BHP Billiton Group, has not resumed activities in the municipality, citing its own commercial interests. Junior plans to denounce this apparent abandonment of Samarco next week before the Ministry of Mines and Energy. If Brazilian federal authorities confirm this situation, the federal government could transfer the operation license to another company, Valor Econômico reported.

* U.S. coal destined for Canada could end up in the crosshairs amid rising tensions between the two allies. About 5.3 million tonnes of U.S. coal was exported to Canada in 2017, according to U.S. Energy Information Administration data.

* Atlas Iron Ltd. received a notice from the office of the Minister for Transport, Planning and Lands that its North West Infrastructure joint venture does not have a priority right to develop Stanley Point Berths three and four in the port of Port Hedland in Western Australia.

* PJSC Novolipetsk Steel intends to boost the quality of its coking coal and drive down costs by implementing the stamp-charging process at its JSC Altai-Koks facility in Siberia.

* A pre-feasibility study for Hill End Gold Ltd.'s Yendon high-purity alumina project in Victoria, Australia, outlined a net present value, discounted at 10%, of US$692 million, an internal rate of return of 34% and a 4.1-year payback period.

* Vimy Resources Ltd. said Australia's Macquarie Bank Ltd. sold down its substantial holding in the company from 8.74% in early May to below 0.1%.

* China's Shandong Ruifeng Stainless Steel plans to install a hot-dipped galvanizing line for steel strip at its steel mill in Shandong province in 2019, Metal Bulletin reported.

* Pakistan's National Tariff Commission put antidumping duties on color-coated coil from China and South Africa, Metal Bulletin reported.

SPECIALTY

* Mineral Deposits Ltd. recommended that shareholders reject Eramet's new takeover offer of A$1.75 per share, saying the offer is still below its independent expert's value range of between A$2.04 per share and A$2.52 per share and remains conditional.

* A scoping study for Savannah Resources PLC's Mina do Barroso lithium project in northern Portugal estimated a base case posttax net present value, discounted at 8%, of US$241 million, an internal rate of return of 48.6% and a 2.1-year payback period.

* This year, Euro Mine Expo in Skellefteå, Sweden, marked another important milestone in the history of the region. Skellefteå will soon host Europe's largest lithium-ion battery cell factory. Northvolt AB just kicked off the first phase of construction for the €4 billion gigafactory after receiving a crucial environmental permit.

* Prosper One International Holdings Co. Ltd., not well known as an exploration financier, is making a push to source the metal used in lithium-ion batteries through a potential exploration deal covering a Chilean property held by Lithium Chile Inc.

* Petra Diamonds Ltd. shareholders approved a rights issue to raise about US$170 million to help the company cut its debt, Reuters reported.

* Lithium Corp. regained full control of the San Emidio lithium brine property in Nevada after American Lithium Corp. failed to fulfill its obligations under the option deal.

* Piedmont Lithium Ltd. outlined a maiden indicated and inferred resource of 16.19 million tonnes grading 1.12% lithium oxide for 182,000 tonnes contained Li2O for its namesake Piedmont lithium project in North Carolina.

* Global Geoscience Ltd. is raising A$53 million in a fully underwritten institutional placement to accelerate the development of its Rhyolite Ridge lithium-boron project in Nevada.

* Canada-based Progressive Planet Solutions Inc. delivered its first sale of commercial-quantity zeolite to a municipality in British Columbia.

INDUSTRY NEWS

* Former Fortescue Metals Group Ltd. CEO Neville Power issued a "call to arms" to Australia's mining executives to stand up to their opponents who would sever the critical ties between industry and communities amid rising distrust in corporate Australia.

* Peru's mining exports in April grew 27.2% year over year, partly due to an increase in copper and zinc shipments, news agency Andina reported.

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